(i) Explain the concept of weighted average number of equity shares outstanding during the period. State how would you compute based on AS-20 the weighted average number of equity shares in the following cases:

(ii) Compute adjusted earning per share and basic earning per share based on the following information:
Net Profit ---- 2010-11 : ₹11,40,000
Net Profit ---- 2011-12 : ₹22,50,000
Number of equity shares oustanding until 31st December, 2011: ₹5, 00,000 Bonus issue on 1st January, 2012 ---- 1 equity share for each equity share outstanding as at 31st December, 2011.

Transcribed Image Text:

1st April, 2011 31st August, 2011 1st February, 2012 31st March, 2012 Balance of Equity Shares Equity Shares issued for cash Equity Shares bought back Balance of Equity Shares No. of Shares 4,80,000 3,60,000 1,80,000 6,60,000